Termination rates
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Termination rates are the charges which one telecommunications operator will charge another in order to terminate calls on their network.
For example, a customer of T-Mobile wishes to call a friend who has a Vodafone mobile. T-Mobile will charge the customer a fee per minute for this call. In turn, Vodafone will charge T-Mobile a fee for terminating the call on their network. This termination rate therefore forms part of T-Mobile's cost of providing the call.
Termination rates are normally highly regulated, and are often set by regulators using international benchmarking, or through use of a LRIC cost model.
